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Minister of Agricultural Policy predicts increase in price of agricultural land by 7-10% annually
KYIV. Oct 13 (Interfax-Ukraine) – The price of one hectare of agricultural land in Ukraine will grow by 7-10% annually, Minister of Agrarian Policy and Food Roman Leschenko has said.
"The price of Ukrainian land will grow, in this matter I am based on the success of the land reform in the EU countries. The cost of one hectare of agricultural land in Poland, which carried out the land reform 20 years ago, is about EUR 10,000," Leschenko said at a press conference devoted to 100 days of the land market operation on Tuesday.
According to the minister, the average price of one hectare of agricultural land as of October 9 was UAH 43,879, but it takes into account the prices of the capital region, where the average price of one hectare is UAH 240,000, and this land is not planned to be further used for agricultural needs, the minister stressed.
"If we are talking about the weighted average land price for commercial and agricultural production, then we are talking about the price of UAH 32,860, and for running a personal peasant farm – UAH 33,000 per hectare. For 100 days we see an increase in pricing by an average of 11.4%," Leschenko said.
He specified that the share of such transactions is 95%.
According to the Ministry of Agrarian Policy, to date, 28,288 transactions have been concluded in Ukraine for 70,569 hectares of agricultural land. The largest number of transactions was registered in Kharkiv (2,332), Kyiv (2,318) and Poltava regions (2,314), the largest amount of land was sold in Kirovohrad (9,938 ha), Kharkiv (about 9,141 ha) and Poltava (6,294 ha) regions.
Leschenko said that from next week the Ministry of Agrarian Policy will switch from daily analysis of transactions on the land market to weekly one.
At the same time, on the website of the ministry in statistics for October 8, when the total number of transactions was 27,570 on 68,540 hectares, the average price of one hectare in the country was UAH 18,110. The highest price was in Kyiv region – UAH 115,200. It was followed by Lviv region – UAH 95,900 and Ivano-Frankivsk region – UAH 44,000. Rivne and Chernivtsi regions closed the top five – respectively UAH 29,700 and UAH 29,000, followed by Odesa and Khmelnytsky regions – respectively UAH 27,400 and UAH 25,100.
The cheapest land, according to the ministry, at that time was in Zakarpattia and Kirovohrad regions – UAH 3,700 and UAH 4,200, respectively, as well as in Luhansk region – UAH 5,600.